Thinking about the future of your child is a great way to plan your investment decisions. Although LIC has withdrawn a few plans, some like LIC Fortune Plus were great harbingers of security for the child. Owing to newer plans being introduced into the market, LIC of India decided to discontinue this plan in 2010. This unit term plan gave definite returns at the end of the policy term to the policyholder or his child.
Insurer pays your premiums in your absence
Invest ₹10k/month and your child gets ₹1 Cr tax free*
Save upto ₹46,800 in tax under Section 80(C)
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Invest ₹10k/month your child will get ₹1 Cr Tax Free*
The best part of subscribing to this plan was that the policy fund attains surrender value in the first two years. Here is a quick look at the details under this plan:
Parameters |
Details |
Policy Tenure |
Until 25 years of a child (nearest birthday) or 75 years of the life assured (nearest birthday) |
Premium Paying Term |
Regular Payment- Same as policy tenure Single-Premium - Nil |
Premium Paying Mode |
Quarterly, Monthly, Half Yearly and Yearly |
Entry Age |
Life Assured – Min - 18 years Max - 55 years Child – Min – 10 years Max - 17 years |
Maturity Age |
25 years of the child 75 years of life assured |
Grace Period |
30 Days |
Sum Assured |
Single Pay - Minimum- 1.25 times Premium Regular Pay – Minimum – 5 times the annualized premium |
Liquidity |
No loan available |
There are different benefits offered by the LIC Fortune Plus Plan by the Life Insurance Corporation of India. The core benefits offered under this plan are as follows:
* Tax benefit will correspond to changes in tax laws
LIC Fortune Plus Plan can be activated via a single premium payment or regular payment plan. The minimum payment amount for a Single Premium payment is *Rs. 40,000/-. The minimum premium amount for Regular pay is *Rs. 1,000/- per month. The regular payment option can be availed through the full policy tenure.
*Standard T&C Apply
LIC allows the insurer to decide and swap funds for risk in between the policy tenure. This helps the policyholder optimize his returns and make the most by investing in better-performing fund options. The swap can be done after three years of the policy tenure are completed.
There are no additional riders in this plan.
To buy LIC Fortune Plus Plan policy, one has to provide:
The LIC Fortune Plus Plan has been withdrawn by LIC and is not available online.
LIC Fortune Plus Plan reviews show that many policyholders had opted for this plan and have benefitted from the Corporation under the terms and conditions. He can ensure financial protection for his child and family in the case of a sad incident of his death.
The suicide clause under this plan will allow the return of the policy fund if the suicide occurs of the policyholder within the first year of the inception or revival of the policy. Since the child is the nominee and will receive the death benefit proceeds, the policy tenure of a minimum of three years has to be completed under the life cover, and only then can the claim be settled.